Part III. Reading Comprehension Directions: This part is to test your reading ability. You will find 2 tasks for you to fulfill. You should read the reading materials carefully and do the tasks as you are instructed. Task 1 (10 points) Directions: After reading the following passage, you will find 5 questions or unfinished statements. For each question or statement there are 4 choices marked A, B, C and D. You should make the correct choice. Want to start budgeting? Set up your own budget first. Follow the steps below to set up your own budget: Make a list of your values. Write down what matters to you and then put your values in order. Set your goals. Write down your goals. Think about what you want to accomplish financially in the next three months, the next year, and the next three years. Determine your income. Figure your available income. Do not include overtime pay, because you shouldn’t rely on that as regular income. Determine your expenses. Review your checkbook, credit card statements, store receipts, and so on. Find out where is your money really goes? “Fixed expenses,” such as a rent, auto, or student loan payments, are easy to determine. “Flexible expenses,” such as food, clothing, and entertainment, vary from month to month. Don’t forget about money spent on taxes or insurance, which is billed quarterly, semi-annually, or yearly. Create your budget. Think of your budget as a “spending plan”, a way to be aware of how much money you have, where it needs to go, and how much, if any, is left over. Your budget should meet your "needs" first, then the “wants” that you can afford. Your expenses should be less than or equal to your total income. If your income is not enough to cover your expenses, adjust your budget by deciding which expenses can be reduced. Then how to stick to your budget? Pay yourself first! Saving is a very important part of protecting yourself financially. Save as much as you can every month. Even a small amount can make a big difference if you keep it up. A great goal is to establish an emergency savings fund large enough to cover three to six months of your living expenses. After you have an emergency fund, your savings can go toward meeting your goals. Check back periodically. Be sure to review your budget regularly. Does the plan still meet your needs and help you achieve your goals? If not, make some adjustments or create a new budget that better meets your needs. 21. Which is the best title for this passage?